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Technology Stocks : Ascend Communications-News Only!!! (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: laleh who wrote (487)	11/6/1997 3:54:00 PM
From: Gary Korn	Respond to of 1629

Excerpt from Rockwell earnings statement: (COMTEX) ROCKWELL: Rockwell 1997 earnings up 12 percent ROCKWELL: Rockwell 1997 earnings up 12 percent NOV 6, 1997, M2 Communications - Rockwell International Corporation (NYSE:ROK) today reported 1997 earnings per share from continuing operations increased 12 percent to $2.94 per share from $2.63 per share in 1996, before acquisition-related special charges in both years. The related income from continuing operations for 1997 increased to $628 million over comparable income of $572 million in 1996. Sales increased seven percent to $7.8 billion in 1997 from $7.2 billion in 1996. Fiscal fourth quarter earnings per share from continuing operations before acquisition-related special charges amounted to 81 cents in 1997 compared to 80 cents in 1996. The related income was $169 million in 1997's fourth quarter, down slightly from $174 million in 1996. The increase in 1997's fourth quarter earnings per share reflects the company's continuing stock repurchase program. Sales for the 1997 fourth quarter totaled $2.1 billion compared to $1.9 billion in 1996. . . . - Semiconductor Systems earnings were 30 percent lower in 1997 on approximately the same sales. Earnings as a percent of sales declined to 14.6 percent in 1997 from 20.7 percent in 1996, due primarily to the highly competitive transition to the business' new high-speed K56flex personal computer modem which has accelerated price reductions, particularly on the older V.34 modem. . . . * In September, Rockwell Semiconductor Systems achieved a significant milestone as the unit installed base of K56flex surpassed that of the 3Com/U.S. Robotics x2 technology. According to information contained in the Dell'Oro industry report, a single Rockwell-based ISP equipment supplier - Ascend Communications - had alone shipped and upgraded more K56flex central-site modem ports than x2 ports shipped or upgraded by 3Com. This does not even take into account significant K56flex port shipments by other major K56flex-based ISP equipment suppliers, including Cisco, Microcom, Shiva and Livingston. K56flex is offered by a large majority of the world's top modem makers and, according to DataQuest, is supported by PC manufacturers who account for over 70 percent of all PCs sold worldwide.

To: laleh who wrote (487)	11/6/1997 5:20:00 PM
From: Maverick	Read Replies (1) \| Respond to of 1629

Ladeh, It's old news but relevant as Sprint, Telecom Finland, Swiss Telecom are looking at GX550 multiservice core switch. Multiservice means it can handle ATM, IP, and FR traffic. GTE, BellSouth,Intermedia are looking at CBX500 multiservice edge switch. Both switches use Navis NW mgmt SW. AT&T WorldNet is evaluating GX550 and CBX500. A few mega-deal resulting from these evals will change the investment community's perception of ASND. I am comfortable w/ this qtr at $290 MM rev. and $0.23 EPS. A few mega contracts for GRF 1600/400, GX550, CBX500 will bolster FY98 prospect. Right now, the investment community takes a very harsh stance on ASND for mgmt in the past was not as savvy in dealing w/ Wall St. as it could have. I guess this is part of the maturing process and growing pain. As a corrective action, ASND has hired a highly credible CFO, Mr. Ashby, who was a CFO of Pac Bell and others. Furthermore, it has taken pain in communicating with analysts, issuing the 9704 and FY98 guidance. It went out of its way to clarify that the next 2 qtr revs will grow between 5 - 10%, and the 2nd half of 98 qtr rev. will grow closer to 10%. Despite all these, some people still chastise the co. I guess it will take 2 consecutive good qtr earnings, some maga-deals to see some upgrades. Of course, the stock should bounce back after the tax write-off season is over or a takeover whichever comes first given that ASND will make 9704 estimate. The investment community is taking the stance that the burden of proof is on ASND. Other NW cos didn't provide as straight forward a guidance as ASND did recently. History will repeat again as you remeber BAY at $15 and COMS at $25. ASND should be much better than those cos when they are in the trough as it is still no. 1 in FR, no. 1 in RA, and gaining market share in ATM and IP switching. Some new products coming next year including voice-over-FR (B-STDX+voice), voice-over-IP (GRF+voice), voice-over ATM (GX550/CBX500 + voice), RAS+voice (MAX & MAX TNT+voice), 155Mb/s FR switch and FRAD. ASND already had DSLTNT and DSLPipe for the xDSL market which should explode in 1999 onwards.